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Kinnevik's net asset value increases by 6 percent

By Prachi Singh

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Kinnevik has announced that its net asset value (NAV) increased by 6 percent to 89 billion Swedish krona (9.5 billion dollars) or 323 Swedish krona (34.6 dollars) per share, in the second quarter, supported mainly by the positive development in the share prices of Zalando and Tele2. The value of the company’s unlisted assets increased to 16.5 billion Swedish krona (1.7 billion dollars) driven by increased value of Babylon and Livongo, and by the investment of additional capital in some of its newer companies such as Kolonial, Pleo and Monese, partially offset by the decline in value in Global Fashion Group.

”It was an eventful second quarter, during which we focused our efforts on continuing the shift in our portfolio towards growth companies. These efforts included supporting high-performers in our private portfolio, evaluating our Millicom stake and supporting the IPO of Global Fashion Group,” said Georgi Ganev, CEO of Kinnevik in a statement.

Key highlights of Kinnevik’s second quarter

The company added that it ended the quarter with a net debt position of 5.7 billion Swedish krona, corresponding to a leverage of 6 percent of portfolio value, well within the leverage target. Kinnevik further said that Tele2 has proposed an extraordinary dividend drawing from the proceeds from the transactions in Kazakhstan and the Netherlands, which is expected to strengthen the financial position by 1.1 billion Swedish krona by the end of August.

Global Fashion Group began trading on the Frankfurt Stock Exchange on July 2, 2019 and the company raised a total of 200 million euros, of which 60 million euros from Kinnevik, to fuel continued growth. Livongo also announced its intention to go public at a proposed price range corresponding to a fully diluted pre-money valuation of 2.1-2.4 billion dollars and Kinnevik has agreed to purchase additional shares at the IPO price from one of Livongo’s investors as well as newly issued shares in the IPO.

During the quarter, the company made total investments of 1,367 million Swedish krona including 632 million Swedish krona in GFG, 336 million Swedish krona in Kolonial, 156 million Swedish krona in Monese, 85 million Swedish krona in Pleo and 157 million Swedish krona in other existing assets.

Kinnevik